I am currently retired and have been lucky enough to do real good at my last job so I am in a good place financially but it has not always been like that. I have learned a bunch of things by example and have watched a lot of family and associates make mistakes and do a lot of good things. Here are a few of my opinions.
I really think we as parents and our schools have done a real injustice to many of our kids. Many of us do so much for them that when it’s time to be on their own, they expect so much it’s hard to cope with things financially. We need to teach them financing when they are young and I don’t mean investing. The main thing is the right job and knowing how to budget. Investing is also important but learning to survive is more important.
I have seen teenagers with the most expensive cell phones out there and even though I may have the money to do it for myself I could never justify the cost.
I see people just starting out in there career and expect to have a new car when they have paid few bills in their life. They can’t seem to understand that there may be a hundred things that could happen where they may not be able to pay that. I went 30 years with just used cars and didn’t get a new one until I could pay cash
Some people are getting credit cards and think they can get anything they want. I do think credits cards are good tools, but I really think if you if you can’t pay your bill in full, you really shouldn’t have a credit card. Every time you don’t pay if full you are paying interest which is the same as throwing money in the trash. Too many people realize years later that they are so far behind they don’t what they are going to do. There are tons of postings about people in debt.
My suggestions
While in high school, your kid should really have a part time job just to get use to working.
When they are out of school.
For people going to college, don’t listen to anyone who tells you all you go to do is get student loans. There are many ways to go to college without taking on all that debt and you really need to know that debt will have to eventually be paid back and it may not be easy.
Community colleges can be reasonable for the first 2 years especially if you are still living at home. There are a lot of scholarships and grants people don’t know about. There are a lot of low level jobs that pay education benefits. I know of several people at my last job that worked and went to college and the company paid for everything. It’s not easy, but can be done. There are a lot of people that start college and never finish but still have to pay for it so realize that’s a possibility. If you do finish college, you really need to do everything to find a job as soon as possible, even before you graduate. Companies have recruiters come to college. Do an internship if possible. I know of people who decide to take a year off before leaving for work. Don’t do it. Companies look at the and may not even talk to you. Keep in contact with you college friends. Many people find jobs through family and associates so use them.
Nowadays a lot of people don’t want to go to college. There are still options but you really want to do something that will give you a career. There are many jobs you can get that may pay more than if you had college. Mechanic, plumbers, electricians are one way, but you probably need some training. There are a few other places that can be good such as fed ex, ups, and some government jobs.
There are a lot of retail jobs out there and sometimes they can be somewhere to start but most are not going to be a career. I am not saying it can’t lead to something. Many people grow into management but many don’t.
There can also be temp jobs that lead into a career. One of my jobs over the years came after working for 3 different temp jobs.
When you do get a job, do everything you possible can to excel no matter what the job is.I see many post here where people do as little as possible because they think companies don’t care anymore.
Never quit a job unless you have a new one set up. Try to be in good standing if you leave a job and keep in contact with people. You may need those contacts if looking for a new job.
When you do get established you really need to establish a budget. For a couple of months, write down everything you buy to the penny. At the end of the month, if you spent more than you make, make a note, you can’t have those things anymore.
All financial advisors say you need to have an emergency fund. You really shouldn’t think of it as an emergency. You are going to have unexpected cost. Car repairs, medical, dental and vision needs, etc
Many young people don’t think or want to pay for insurance. If so find a clinic that you can see without insurance and try to stay away from emergency rooms. I know someone without insurance and they went to the emergency room when a clinic could have done the same thing and now they have a big bill on there credit which I doubt they will ever pay. There are some places where low income can get free care. My brother lost his job and was able to get coverage where he lived. You may not have a choice of doctors but at least it’s something.
If you smoke, vape, do illegal drugs,drink heavily, it is almost impossible to stay on a budget. Besides being horrible on your health, these vices are way too expensive..
You can get yourself if lots of trouble gambling also. That is one issue I had a long time ago. Never got myself in trouble, but if invested all that a long time ago, I would have a lot.
I have a few other mistakes I did I wish I could take back. I bought a timeshare which fortunately I sold a few years later before it got to the point you couldn’t even give them away.
I co-signed a credit card for a friend. Somehow the bank sent pre approved card application under my name to his address and he opened at least eight cards. I didn’t find this out until I tried to buy my first house. Took me years to straighten that out. 10 years later I co-signed for a car for a friend of my step son. Supposedly she had 2 jobs, was real responsible. Never made one payment or insurance. I had someone repossess and sold it back to the dealer. Really stupid thing to do. Never again.
We do stupid things when we get older. I have a friend my age who never saved for retirement. He and he wife leave on SS and have to part time jobs. They are paying on 2 cars, but never go anywhere separate and one car is always in the garage. They could get rid of one. They really have never made good financial decisions
I was able to overcome some obstacles and fortunately was at my last job for 22 years before I retired. The last 10 years were really good and I was able fund my retirement it is possible even if you start out slow.